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Message: <blockquote data-quote="pluckem" data-source="post: 252305" data-attributes="member: 843">Been down some similar investigations and topics in the lastcouple years.First thing, is each lending institution/bank will have differentrequirements and loans available. So you really need to call around and discuss options with more than one.  Also, I have found the smaller or more local banks or credit unions typically will take a more practical approach and offer a bit more flexibility in what they offer.Many places will not require 20% down on a loan for primary residence. Especially if you have decent credit and recent steady history of employment and income. You can definitely use the equity you have in the lot you own for part or all of the required payment. For example, say your lot is worth $50k and the house you want to build is quoted at $200K. What the bank will do is give you a $200k construction loan that when the build is complete will be rolled into a mortgage on your home (building and land). Your newly completed house will be appraised for $250k. Your current equity of $50k in your lot is 20% of the $250k appraisal. You will apply that to your mortgage loan and in that case wouldn’t require any additional cash for the down payment.Pick or decide on the lender before you start down this process.  If you piece meal it you will likely end up paying more.Lenders need to do their own appraisals so every appraisal you have done will cost you money. If you hire one, that appraisal is just for you. If lender “A” does one that will just be for them and if future lender “B” needs one you will have to pay again for that.The same goes for costs and fees related to the closing. If you choose a lender to handle both the construction loan and the final mortgage, most will only charge you a single time for closing fees. That usually equates to a $1-$4k savings. From what I have found, modular type of homes will not save you any $.  The labor savings that are realized by building it at a single location in an environmentally controlled building is usually offset by the transportation costs needed to get it to site. It can save you time if you need something right now or help out if the build location is in the middle ofnowhere and it’s very difficult to find any contractors will to do the work. </blockquote>

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